The Federation of Small Businesses (FSB) has called for the introduction of ‘Open Banking’ style measures to the energy market, in a bid to allow small businesses access to cheaper tariffs and make it easier for them to switch energy provider.
A new report, produced by the FSB and Fingleton Associates, sets out how energy data could be shared and used to ‘empower customers’.
Under the proposals, the introduction of a new ‘Open Energy’ system would see a number of reforms, including:
- the standardisation of tariffs and other relevant information, to allow for automated comparisons
- making smart meter data available to third parties via secure Application Programming Interface (API)
- allowing energy customers to delegate their power to switch contracts to a third party.
FSB National Chairman, Mike Cherry, commented: ‘We need an open and transparent energy market that allows smaller businesses to take control of their data and use it – via an intermediary if they choose – to find the best energy deal, switch providers, take advantage of smart technology, manage when and how they use their energy, and even how it is generated.
‘Open Energy, like Open Banking, has the potential to transform the market – if implemented correctly. It would help small businesses to be more energy efficient and empower them to make energy choices that are cleaner, greener and more sustainable.’